eBay to spin off PayPal into separate public company in 2015

eBay will spin off its online payment division PayPal into its own separate, and publicly traded, company sometime in the second half of 2015. eBay claims that keeping PayPal around beyond 2015 "clearly becomes less advantageous to each business strategically and competitively."

eBay acquired PayPal for $1.5 billion way back in 2002. In announcing today's separation, eBay said:

Creating two standalone businesses best positions eBay and PayPal to capitalize on their respective growth opportunities in the rapidly changing global commerce and payments landscape, and is the best path for creating sustainable shareholder value.

Devin Wenig, who currently serves as eBay's Marketplaces leader, will become the new CEO of the company when the PayPal spin off is complete. Dan Schulman, previously the president of American Express's Enterprise Growth Group, has been named as President of PayPal and is currently scheduled to be its CEO when the two companies part ways.